Verizon said Monday more than 10,000 employees, or about 7 percent of its global workforce, have accepted the company’s buyout offer, first announced in September as a cost-cutting measure. Verizon previously announced a goal to save $10 billion in cash by 2021.
The program offered eligible employees and managers up to 60 weeks of salary, bonus and benefits, depending on length of service. End dates for employees who accepted the deal range from year-end 2018 to June 2019. The program was offered to 44,000 employees across all of Verizon’s business segments.
“For those who were accepted, the coming weeks and months will be a transition. For the entire V Team, there will be opportunities to work differently as we prepare for the great things to come at Verizon,” CEO Hans Vestberg said in a note to employees.
“These changes are well-planned and anticipated, and they will be seamless to our customers,” Vestberg said in a statement. “This is a moment in time, given our financial and operational strength, to begin to better serve customers with more agility, speed and flexibility.”
Verizon Communications Inc. shares were unchanged in after-hours trading Monday. Year-to-date, VZ has gained 15.31%, versus a 0.25% rise in the benchmark S&P 500 index during the same period.
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